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CSE investor sentiment soars on Chinese financial assistance news

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By Hiran H.Senewiratne

CSE investor sentiment was propped up yesterday when Chinese ambassador to Sri Lanka Qi Zhenhong announced that the Chinese government is considering extending to Sri Lanka US $ 2.5 billion in financial assistance in two components. The share market was also boosted by the news that Sri Lanka is seeking support from the IMF for a bailout, stock market analysts said.

“The Chinese government is considering US $ 2.5 billion – a US $ 1 billion loan, 1.5 billion dollars buyers’ credit, ambassador Qi told a media conference in Colombo.

Under this loan, buyer’s credit is usually a loan given by Exim Bank of China to purchase goods and services from the People’s Republic and has been used to finance infrastructure in the island in the past.

Amid those developments both indices moved upwards. The All -Share Price Index moved up by 67.9 points and S and P SL20 rose by 29.8 points. Turnover stood at Rs 1.1 billion sans a single crossing. In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 194 million (752,000 shares traded), Browns Investments Rs 120.9 million (10.8 million shares traded), LOLC Finance Rs 79.8 million (4.5 million shares traded), JKH Rs 74.8 million (77,000 shares traded), Royal Ceramic Rs 47.5 million (953,000 shares traded), ACL Cables Rs 44.1 million (552,000 shares traded) and Hayleys Rs 40.3 million (407,000 shares traded). During the day 51.6 million share volumes changed hands in14000 transactions.

The CSE turnover level and investor participation was low compared to the previous year. It is said that high net worth and institutional investor participation was noted in Hayleys, Commercial Bank and JKH. Mixed interest was observed in Expolanka Holdings, LOLC Finance and LOLC Holdings, while retail interest was noted in Browns Investments, SMB Leasing nonvoting and Dialog Axiata.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) and Food, Beverage and Tobacco sector was the second highest contributor to the market turnover (due to Browns Investments),

Sri Lanka’s bond market remained inactive yesterday in dull market trade, brokers said while the rupee was quoted around 275 in bids with no offers.

Commercial banks were offering to sell dollars at 274.99 rupees for telegraphic transfer and buy at 264.66 rupees on Friday.

In the secondary market, only a bond maturing on 01.08.2024 was quoted at 14.30/40 per cent on Monday, up from 14.18/28 a day earlier. Sri Lanka’s debt office is issuing 56.5 billion rupees to be sold in a Treasury bills auction to be held on Wednesday (23).

The 56.5 billion bills will be split into 20 billion maturing in 3-months, 15 billion in 6-months and 21.5 billion in 1-year.



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Sri Lanka’s economic confidence index plummets

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‘No one has rated Sri Lanka’s economic condition as excellent. 1.8 % rated it as good and 1.3 % rated it as getting better. The resulting score was a (-) 96. This rating was (-) 83 in January 2022, a wide ranging Verite Research public opinion survey reveals.

Key findings of the survey:

Government approval rating drops from 10% to 3%

The second round of the Gallup Style “Mood of the Nation” poll was conducted in June by Verité Research. It assessed the approval, satisfaction, and confidence of the nation in relation to the government, the country, and the economy.

The poll was conducted as a part of the syndicated survey instrument by Verité Research. This instrument also provides other organisations the opportunity to survey the sentiments of Sri Lanka.

1. Government approval rating | 3% | To the question, “Do you approve or disapprove of the way the current government is working?” only 3% said they approve. In January 2022 this rating was at 10%.

2. Sri Lanka satisfaction | 2% | To the question, “In general, are you satisfied or dissatisfied with the way things are going in Sri Lanka?” only 2% said they were satisfied. This rating was at 6% in January 2022.

3. Economic confidence | negative (-) 96 | Multiple choice questions on the condition and trajectory of the economy are used to generate an economic confidence score. The score can range from negative (-) 100 to positive (+) 100. A score above zero means more people see the economic conditions positively rather than negatively. If everyone thinks the economy is in either excellent or good condition, and everyone also thinks it is getting better, the score will be (+) 10. If everyone thinks that the economy is in a poor condition, and everyone also thinks it is getting worse, the score will be a (-) 100. No one rated the economic condition as excellent. 1.8% rated it as good; and 1.3% rated it as getting better. The resulting score was a (-) 96. This rating was (-) 83 in January 2022.

Implementation of “Mood of

the Nation”

The poll is based on an island wide nationally representative sample of responses from 1,052 Sri Lankan adults, conducted in June 2022. The sample and methodology was designed to ensure a maximum error margin of under 3% at a 95% confidence interval. The polling partner was Vanguard Survey (Pvt) Ltd.

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Decline in share market in the wake of rate hike reports

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By Hiran H.Senewiratne

CSE trading activities began on a positive note yesterday but during the latter part of the day the market experienced a dip on account of the overall supply chain economy being subjected to a contraction, stemming from the fuel crisis. Consequently, CSE activities were relatively low keyed, market analysts said.

“We are reverting to the negative. There is uncertainty on all fronts, from the political to the economic. Therefore, we are expecting a rate hike on Thursday. This is creating a bit of a cloud and we may see this continuing further, a top market analyst said.

Even if top level decision- making is happening in Sri Lanka the impact is not felt at the grassroots level. This has resulted in unrest in the country, the analyst said.

Amid those developments, both indices moved downwards. The All- Share Price Index went down by 97.9 points and S and P SL20 declined by 34.3 points. Turnover stood at Rs 1.3 billion with one crossing. The crossing was reported in JKH, which crossed 600,000 shares to the tune of Rs 73.2 million, its shares traded at Rs 122.

In the retail market, the top seven companies that mainly contributed to the turnover were; Lanka IOC Rs 611 million (7.3 million shares traded), Expolanka Holdings Rs 173.9 million (one million shares traded). LOLC Holdings Rs 47.4 million (120,000 sha4es traded), Hayleys PLC Rs 46.5 million (697.000 shares traded), Browns Investments Rs 46.3 million (6.4 million shares traded), JKH Rs 21 million (173,000 shares traded) and Softlogic Holdings Rs 20.5 million (794,000 shares traded). During the day 109 million share volumes changed hands in 15000 transactions.

The International Monetary Fund said last Thursday its talks with crisis-hit Sri Lanka had been “constructive”, thereby raising hopes it would soon grant preliminary approval for a desperately needed financial support package, observers said.

Meanwhile, the Colombo Consumer Price index rose 54.6 per cent year-on-year in June against a 39.1 per cent rise in May, according to the Statistics Department.

Yesterday the US dollar rate was Rs 360.73, which is now being controlled due to the prudent fiscal and monetary policies of the Central Bank.

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Dialog Club vision members receive access to an exclusive screening of ‘Jurassic World Dominion’

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In a bold and breath-taking new global adventure, the epic conclusion to the Jurassic film franchise ‘Jurassic World Dominion’ hit theatres across the world on June 10. Just a day after its global premiere, Dialog Club Vision Red members and their loved ones received special access to an exclusive screening of the film at the Kandy City Centre Multiplex on June 11.

The explosive end to the Jurassic era sees two generations of the film’s franchise unite for the first time with Hollywood’s Chris Pratt and Bryce Dallas Howard joined by Oscar winner Laura Dern, Jeff Goldblum and Sam Neill. Dialog Club Vision members were some of the first to witness the utopian world where Dinosaurs and humans co-exist.

With the best interests of its members and their loved ones at heart, Dialog Club Vision continues to deliver a world of exclusivity and privileges such as personalized care, exclusive discounts and offers, lifestyle and entertainment events and more. To explore more exciting offers available for Dialog Club Vision members, and to learn more about Sri Lanka’s premier loyalty programme, customers can visit the MyDialog App or visit dialog.lk/club-vision

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